Financial firm heads accused in Chicago of insider trading

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CHICAGO (AP) _ Federal prosecutors in Chicago have charged a former financial analyst and former investment banker with securities fraud for alleged insider trading.

The U.S. attorney’s office says in a Tuesday statement that a former director of a Chicago-based investment research firm, Jason Napodano, made $143,000 in profit from illegal trades. He allegedly bought stocks he knew were about to receive positive reports, then sold them.

Another former director faces similar allegations in a related case. Bilal Basrai allegedly made $37,000 from the illegal purchase and sale of stocks.

Napodano is from Waxhaw, North Carolina, and Basrai is from Naperville, Illinois. Both are 43. Lawyers for Basrai disclosed he cooperated and intends to plead guilty. Documents didn’t include a name of Napodano’s attorney.

Securities fraud can carry maximum 20-year prison sentences.